Marketing environmentMacro environment factors:

Political & Legal

FB-147Marzenco M.

Putina V.Spinu I.

Toderas T.

PESTEL analysis (Political, Economic, Social, Technological,

Environmental and Legal analysis) describes a framework of macro-environmental factors used in the environmental scanning component of strategic management.

Political Factors are basically to what degree the government intervenes in the economy.

Tax policy  -is the choice by a government as to what 

taxes to levy, in what amounts, and on whom. The macroeconomic aspects concern the overall quantity of taxes to collect, which can inversely affect the level of economic activity; this is one component of fiscal policy. The microeconomic aspects concern issues of fairness (who to tax) and allocative efficiency

Labor Law – mediates the relationship between workers

(employees), employers, trade unions and the government. Collective labour law relates to the tripartite relationship between employee, employer and union. Individual labour law concerns employees' rights at work and through the contract for work. Employment standards are social norms (in some cases also technical standards) for the minimum socially acceptable conditions under which employees or contractors are allowed to work.

Environmental Law is a collective term describing the network of 

treaties, statutes, regulations, and common and customary laws addressing the effects of human activity on the natural environment.

A related but distinct set of regulatory regimes, now strongly influenced by environmental legal principles, focus on the management of specific natural resources, such as forests, minerals, or fisheries.

Trade restrictions is an artificial restriction on the trade of goods

and/or services between two countries. It is the byproduct of protectionism. However, the term is controversial because what one part may see as a trade restriction another may see as a way to protect consumers from inferior, harmful or dangerous products.

Tariffs – are taxes on import or export of goods.

There are two types of tariffs: protective and revenue tariffs. Protective tariffs are put in place specifically to make foreign goods more expensive to protect domestic industries from competition. Revenue tariffs are put in place to raise money for the government. It all depends on the intention of the government that implements the tariff.

Political stability – is the durability and integrity of a current government regime.

Political instability plays a role in why some countries remain poor. This could be ethnic tension, tribalism, or all out war. Needless to say, countries with long-term conflicts such as the ones in Somalia or Afghanistan, have little chance of developing. Other nations such as Sri Lanka, have simmering ethnic divides that are a constant distraction, de-stabilizing the region and discouraging investment.

Legal factors include discrimination law, 

consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products.

Discrimination law  - refers to the unequal treatment of people.

Some countries mandate that in employment, in consumer transactions and in political participation people must be dealt with on an unequal basis of sex, age, race, ethnicity, nationality, disability, sexual orientation, gender identity and sometimes religious and political opinions.

Consumer protection  is a group of laws and organizations designed to

ensure the rights of consumers as well as fair trade, competition and accurate information in the market place. Consumer protection laws are a form of government regulation, which aim to protect the rights of consumers.

Antitrust laws - also referred to as "competition laws" - are statutes developed by the U.S. Government to protect consumers from predatory business practices by ensuring that fair competition exists in an open-market economy.

Competition law is a law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement.

Labour law or employment law mediates the relationship between workers

(employees), employers, trade unions and the government. Collective labour law relates to the tripartite relationship between employee, employer and union. Individual labour law concerns employees' rights at work and through the contract for work.

Health and safety law  is a body of law that protects the health, safety

and welfare of the general public and certain defined sectors of the population such as employees. Most jurisdictions have a framework of health and safety law which will usually be enforced by the state using an inspectorate, regulatory control and the criminal law.

The regulatory framework for health and safety will usually operate alongside a civil law system which would allow individuals to bring a lawsuit against a person, company or organization that may have been liable for personal injury or even death.

Thank you !